1. A sophisticated client is confident, knowledgeable and very up to date. o True o False 2. The law protects you from people who try to take advantage of you. o True o False 3. The law is sophisticated. o True o False 4. The business decisions can't be made without studying a business law. o True o False 5. Business owner makes many business decisions to run his business successfully. o True o False 6. The small courts deal with the claims exceeding to $35,000.00 claims. o True o False 7. Law is the body of rules made by government that can be enforced by courts or government agencies. o True o False 8. Canadian courts are not open to the public. o True o False 9. Defamation is a published statement that is to a person's detriment. o True o False 10. The law of torts involves private disputes decided in the civil court. o True o False 11. A tort is committed when one person causes injury to another, harming his or her person, property, or reputation. o True o False 12. A plaintiff is a person who defends the claim. o True o False 13. Insurance is taken to spread the risk of loss. o True o False 14. A contract is not a binding on each party. o True o False 15. A contract is an exchange of promises not enforceable in court. o True o False 16. A creditor is bound by her promise to take less in full satisfaction of the debt. o True o False 17. A contract must always be in writing. o True o False 18. All contracts that restrain trade are illegal. o True o False 19. Verbal contracts are not valid in the court of law. o True o False 20. Misrepresentation in the contract is not punishable act. o True o False 21. A contract is not a time bound document. o True o False 22. It is not necessary to have at least two parties to make a contract. o True o False 23. Discharge of contract can come to an end through performance, breach, agreement, or frustration. o True o False 24. When the decision making is left in the hands of the disputing parties to work out for themselves is called mediation. o True o False 25. When a third party makes a binding decision in the matter under dispute is called arbitration. o True o False 26. When a neutral third party assists the parties in coming to a resolution on their own is called negotiation. o True o False 27. Debtor has the right to be notified of sale and to redeem the property before it is sold by the bank. o True o False 28. A guarantee is a contingent liability in which someone agrees to be responsible when a debtor fails to pay. o True o False o False 29. Chattels mean tangible and movable property. o True o False 30. Fixtures are not the permanent part of a property. o True o False 31. The corporation is not a separate legal entity. o True o False 32. A sole proprietorship consists of two or more partners. o True o False 33. Sole proprietor has limited liabilities of a business. o True o False 34. The law does not protect you from people who try to take advantage of you. o True o False 35. The terms of contract simply refer to promises made by one party to another party by virtue of offer and acceptance. In this way, contractual terms provide a blueprint of what the parties have obligated themselves to do. o True o False 36. A provision that is not expressly included in a contract but that is necessary to give effect to the parties' intention will not become part of the contract. o True o False